Modern Comment Blog

The Modern Markets Initiative Blog on News and Trends of Interest

Pension Funds Ring Closing Bell With MMI at NYSE

On May 14, MMI was excited to join NCPERS in ringing the closing bell at the NYSE. MMI celebrated the public service in our communities of the NCPERS trustees for teaching our children, policing our streets, and being there if need be to run into a burning home. Also, the vital work of the pension fund trustees in working to advance secure retirement.

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HFT Supplies Dependable Liquidity During Market Volatility

In a market sell-off, as we saw on February 5th, automated traders including those called Designated Market Makers (DMMs) at the New York Stock Exchange and the largest market makers on Nasdaq used HFT tools to quickly stabilize the markets.  Many market makers have obligations to buy stocks when no one else wants to buy, and to sell when no one wants to sell.   These capital commitments of electronic market makers using HFT play a vital role in bridging the gap between supply and demand for a stock. 

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Just When Savers Thought They Were Out … FTT Pulls Them Back In!

On this day in 1991, The Godfather: Part III debuted in France. It wasn’t a very memorable movie, except for the iconic quote “Just when I thought I was out… they pull me back in.” I was reminded of that line when I read that Rep. Ellison’s financial transaction tax (FTT) picked up a new […]

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Is NYSE Bumping up its Listings?

Recently, NYSE announced it was going to introduce a “speed bump” exchange called NYSE American. Critics jeered that NYSE just blatantly copied IEX’s market structure. And it is true that the bump is going to be 350 microseconds, just like IEX. It will have a complex discretionary pegged order type, just like IEX. And it […]

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Getting Up to Speed on the NYSE Announcement

In some recent news, the New York Stock Exchange announced they were allowing stocks from other exchanges to trade on their main floor. That reversed a centuries old policy and left some wondering why NYSE was breaking with tradition. Further, the press release explaining the new access touted the benefits of the NYSE allocation model […]

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The Buy Side Isn’t Buying It

If you’ve listened to the market structure debate over the past few years, you’d think large, institutional investors — the “buy side” — desperately need ‘speed bumps’ and other barriers to protect them from high frequency trading (HFT). The discussion has been more about demonizing than data, except that it ultimately led to a well-publicized […]

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Raining on their Parade

This month, a study was presented by two professors at Wilfrid Laurier University that looked at the effect of rain, sleet and snow on U.S. trading quality. A simple interpretation of its findings by modern market critics led to a string of jubilant comments touting that when bad weather slows fast trading, market prices improve, […]

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India’s Markets at the Crossroads

India has the eighth largest economy in the world and its exchanges trade about $750 billion worth of stock per year. Its markets have emerged to become a world-class trading ecosystem thanks in part to the increased participation of intermediaries who use high frequency trading tools. However, the Securities and Exchange Board of India (SEBI) […]

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A “Source” of Serious Concern

If there is any agency in the world that can be trusted to keep data safe it would be the National Security Agency (NSA).  It employs the world’s elite cybersecurity personnel and at one time had a top secret budget as high as $10.5 billion.  How do I know the NSA had a top secret […]

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It Gets Late Early At StubHub

“So, did you go to see A-Rod’s last game on Friday?”  That’s a question asked this week by friends, family and just about anyone who knows me as a die-hard Yankees fan.  The answer is kind of embarrassing, but the ribbing it usually leads to is actually pretty funny and somewhat indicative of my work […]

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“High-frequency traders provide a vital service to all market participants…HFT helps to create efficient markets by facilitating price formation, lowering the cost of trading and improving the linkage between markets."

BlackRock Viewpoint, June 2011

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